Mellon Bank Still on Defensive
In Its Fight for Independence

Last year, Mellon Bank Corp. got squeezed by an unwanted suitor. This year, it is still feeling the pressure from shareholders.

Martin G. McGuinn, who took over as chairman of Pittsburgh-based Mellon on Jan. 1, has moved quickly, shaking up senior management and planning the sale of several underperforming units to shore up shareholder support and boost performance amid continuing takeover talk. Mellon, perennially mentioned as a desirable takeover target, has been feeling some heat since it unilaterally rejected a $22.1...